The annual growth of the group, in particular

The September 3rd 2013, the announcement of
the acquisition affected share prices. During the morning, share price went up
and reached up to + 2.9%, but after, during the afternoon it went back to 2.81%
to €75.18. In a first time, shareholders evaluated that the transaction price
was too high compared to the sales BioFire is expected to generate in 2014, by
paying 6.4 times this expected revenue 7.

Now, as attest figures in the table 2 below, the
acquisition of BioFire is a real success in financial terms, and has a real
positive impact on the global revenue of bioMérieux and on its growth; in particular
when we are looking for the revenue per application (the molecular biology’s
revenue). Sales linked to BioFire products steadily increase from the
acquisition and have a positive impact on molecular biology’s revenue. The
acquisition of BioFire in order to reinforce bioMérieux’s molecular diagnostics
business and to consolidate its position as a major player in infectious
disease diagnostics was a good strategy. In fact, in 2014, BioFire sales
represented 45% in molecular biology application revenue and in 2016 it lead to
a 77% increase year over year. In order to obtain these results, bioMérieux
invested in the development of FilmArray; improvement of panels, FDA approvals
allowing it to confirm its market lead compared to its competitors. Outside of
clinical applications, BioFire Defense also contributed to the annual growth of
the group, in particular in 2014 where it posted €12 million in revenue
compared to zero in 2013, and at the same time, R related revenue were
flat at € 7 million 89.Regarding
bioMérieux’s aim to strengthen its presence in North American market, we also
can conclude that the acquisition of BioFire made a growing contribution (table3).
In fact, the large increase between 2014 and 2015 (+42%) should be linked to
the efforts set up to obtain FDA approvals for the FilmArray, among others
things; in 2015 it obtained the FDA approval for the instrument FilmArray 2.0 and
for the ME panel. 

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Regarding
BioFire point of view, it obtains an international presence through bioMérieux’s
network, because at the beginning BioFire was just in the US market, and  now it is known worldwide.In this part, we will see that, in my opinion,
bioMérieux has to face to some  issues
leading to a certain limitation for this acquisition, as in most acquisitions.

In
a first time, we can raise a possible problem linked to the difference between
the American culture and the European culture. In fact, the second one, and
here bioMérieux, is more in the perspective of discussion between partners, in a
consensual way compared to the American who is more self-centered and take
unilateral decision. For example, in bioMérieux side, we talk about an
acquisition, which is the real case, and in the BioFire side, we just talk about
a merge between the two companies. BioFire invested a lot during the change of
the company name in 2012, and it seems to be too proud to admit that it was buying,
even if it was its choice.

Furthermore,
the second issue that we can notice is in term of communication. In fact, the
first strategy, let BioFire to be autonomous on an operational way, had a
negative impact on the global acquisition: 
 now bioMérieux has difficulties
to completely include BioFire in the communication strategy of bioMérieux 6. In
fact, considering that it is not an acquisition but a merge, BioFire remains a
separate entity and has its own communication policy, and is not fully open to
adopt the bioMérieux’ strategy.  FilmArray
is still known as a BioFire product, instead of a bioMérieux product.

To
finish, few years ago, bioMérieux encountered a big issue with the production
of its blood culture bottle. The lack of these bottles for hospitals had a
negative impact on the bioMérieux’s image. It was a supplementary reason for
BioFire to do not want to be directly associated to bioMérieux’s image, even if
now, bioMérieux surpasses this issue and has restore its image 6.In conclusion, this acquisition is a real success for
bioMérieux, in particular in financial terms and allowed to it to strengthen
its leader position in the diagnostic market but also in the North American
market. In the BioFire side it is also a success because it allowed for it to
benefit from the international presence of bioMérieux.

However,
to qualify what we are saying,  we can
pick up some difficulties in term of communication between both companies
linked to the initial strategy of bioMérieux. In fact, at the beginning
bioMérieux wanted to let BioFire run independently the operational activities
in order to avoid it the complex bioMérieux’ processes. Unfortunately, this
initial choice has an impact today because BioFire does not completely consider
itself as a bioMérieux company but rather seeks to be its equal.  On the other hand, I think that if we analyze
each acquisition for any company, we can almost every time raise some
difficulties in the operational way.  Furthermore,
in my opinion, within bioMérieux, and excluding the FilmArray team, this
distinction between both companies is not really well understanding by
employees because these terms of acquisition are different compared to what
bioMérieux is used to do. In fact, it used to frequently do acquisitions, and
each time, the bought company or product is totally included in the bioMérieux’
processes.